Shenda Shares ((600626): From Profit To Loss In 2020, The Expected Loss Is 640 Million Yuan - 960 Million Yuan

Shenda shares (600626. SH) released the annual performance forecast in 2020. It is estimated that the net profit attributable to the shareholders of the listed company will suffer losses in 2020, and the estimated amount is - 640 million yuan to - 960 million yuan. The net profit attributable to the shareholders of the listed company after deducting the non recurring profit and loss is - 696 million yuan to - 1.044 billion yuan.

The company's performance loss in advance is mainly due to the provision for impairment of long-term assets (including goodwill) to auria solutions Ltd. (hereinafter referred to as "auria company") which holds 70% of the shares. It is estimated that the impact on the company's net profit attributable to the shareholders of the listed company in 2020 will be - 520 million yuan to - 780 million yuan.

Shenda shares (600626. SH) announced that, according to the accounting standards for Business Enterprises No. 8 - asset impairment, accounting supervision risk tips No. 8 - goodwill impairment and the company's accounting policies, the company's overseas subsidiary auria solutions has made a series of changes Ltd. (hereinafter referred to as "auria company") has conducted preliminary impairment test on relevant asset groups. In 2020, the company plans to make provision for impairment of long-term assets (including goodwill) from 530 million yuan to 790 million yuan. It is estimated that the impact on the net profit attributable to shareholders of listed companies will be - 520 million yuan to - 780 million yuan.